Long-term Bitcoin holders and miners were among the biggest sellers of the asset over the past two weeks, and there are some signs of renewed demand, on-chain analytics firm CryptoQuant said in a report Wednesday.
Wallets tracked by CryptoQuant show whales have sold more than $1.2 billion in BTC over the past two weeks, possibly using brokers rather than on the open market.
Real Profits of Bitcoin Whales | Source: Ki Young Ju
“Traders are still not increasing their Bitcoin holdings and large holder (whales) demand is lacking strength. Stablecoin liquidity continues to slow, growing at slowest pace since November 2023.”
These traders have reduced their holdings since the BTC price traded above $70,000 in late May, reducing the UTXO age tracked by CryptoQuant.
Unspent Output from Bitcoin Transactions (UTXO) is generated in every Bitcoin transaction which traders use to track buying and selling patterns in previous, current and upcoming market cycles. A decrease in UTXO age typically indicates increased Bitcoin activity and therefore selling. Conversely, increased figures represent greater holdings in the market.
The UTXO age group shows a lack of demand | Source: CryptoQuant
According to market observers, miners may increasingly look to the booming artificial intelligence (AI) sector instead of Bitcoin to make their transactions, leading to them selling rewards instead of holding them. . Both sectors primarily use powerful computing chips to create and maintain data—a resource that miners already possess.
Lucy Hu, senior analyst at cryptocurrency fund Metalpha, shared:
“One of the biggest trends since the Bitcoin halving this year is that miners are increasingly turning to the AI business. The decline in mining rewards has prompted miners to look for other channels to increase revenue. With AI companies needing energy-intensive data centers, Bitcoin miners are gradually increasing their revenue from sales to AI companies.”
Since June 5, the price of BTC has dropped from $71,000 to just over $65,000 on Wednesday as the US dollar strengthens, capital is withdrawn from riskier assets, and traditional stock indexes rise. chief. Meanwhile, US-listed ETFs tracking the asset recorded net outflows of more than $600 million last week – their worst performance since late April.
BTC price chart 4 hours | Source: Tradingview
Some traders have warned of a drop to as low as $60,000 in the absence of a growth catalyst.
You can see BTC price here.
Minh Anh
According to Coindesk
